How Much Should A Property Manager Cost Me?

How much should a property manager cost me?

It’s important to note that fees and charges vary from one company to the next and are also affected by different property markets.

Here are a list of common fees that a property manager will charge:

Management Fees

Management fees are charged on a percentage basis of the total rent monies collected and is often charged at the end of each month. Sometimes a landlord will request fortnightly payments at which point the management fee will be deducted at that time also.

The amount charged will depend upon the actual rent amount. The management fees are associated with general management duties such as:

Rent collection and managing rental arrears.

Paying and recovery of water consumption from tenants.

Conducting regular rent reviews.

Preparing statements for the owner and collating supporting information for the owner’s statement.

Organising maintenance repairs and quotes.

Liaison and regular follow-up with maintenance contractors.

Organising special water readings when required.

Organising keys for inspections and tradespeople.

Copying/scanning of invoices.

Attending to the payment of general property expenses such as council rates.

Liaising with owners and tenants.

Liaising with insurance companies.

Attending to daily telephone, email and fax enquiries.

Liaising with the strata company if applicable.

Processing notices to vacate.

Disbursement of the vacated tenant’s bond.

Administration of advertising tribunal hearings.

Advertising activities.

Legislation updates and compliance.

Generally speaking most yearly management fees only average around $1,500 per annum for all of the above tasks.

Letting Fee

The letting fee is based on the weekly rent and only charged when a new tenant is found. If a tenant breaks their fixed term tenancy agreement prior to the end date, the letting fee is generally paid by the outgoing tenant as compensation for ending their agreement early.

Processing the application for tenancy, including checking of all references.

Attending to the preparation, execution and processing of lease documentation including the bond lodgement form, general information for tenants and photocopying keys.

Other Fees

Additional fees may be charged for other related tasks to managing your property such as:

Administration fee – also referred to as a statement fee.

Advertising fee.

End-of-financial year statement fee

Lease renewal fee.

Routine inspection fee.

Tribunal representation fee.

Conclusion

Whilst considering cheaper property management companies may be enticing in order to maximise your income by saving on expenditure, this can ultimately end up costing you far more. Property management teams with the latest technology and systems in place to maximise your return and minimise your exposure to risk must charge accordingly for their investment in these technologies. It is often recognised that these offices have a better staff culture and less turnover of staff, which provides a more enjoyable and profitable client experience. 44 Home Real Estate has invested in the latest property management technologies to provide a better client and landlord experience.